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Monday, May 11, 2015

Start Invest As Low As RM100! Now Everyone Can Invest!

Many people have always thought that one would need a lot of money to start investing. But, contrary to this common belief, investing is not just for the rich people. In fact, it is in investing that could make one rich! Yes, I'm talking about....

Start your investment as low as RM100 only!

This is important, especially for those who just started to work and thinking where your salary could goes to. So instead of putting into your bank saving account with very minimal of interest that barely able to counter the inflation, why not making a regular saving plan in Unit Trust? (Provided that you already have an emergency fund of 3 to 6 months of salary)

Snowball Effect

Snowball Effect is where you invest a small amount of money regularly, eventually the small amount of money will gain in size and momentum and ultimately leads to exponential growth. Of course, this would required discipline to maintain and keep going the good habit.

Compounding Effect

Apart from investing regularly, reinvesting the gains from your investment is important to grow it even bigger with the Compounding Effect. Take a look at the chart below, 30 years down the road with RM100 monthly, without taking out the interest or gains, the difference could be as big as RM47,000!

Delayed gratification is needed for this the power of compounding to take effect!

You gotta resist the temptation for an immediate reward and wait for a later reward.

Nevertheless, the rates of return is important as well if you wish for a bigger difference at the end of the period. With a 15% of compounding interest, the return could hike up as much as 10 times of the return of 3% interest return. It is all depending on how much you want at the end of the day and how much risk you could take!

Dollar Cost Averaging Effect

Regular Savings Plan actually utilizes the Dollar Cost Averaging Effect principle whereby investing a fixed amount of money regularly will eventually resulting an average price, regardless of the market up or down. Good thing about it? You do not have to time the market on how to buy low sell high! Nobody could do it correctly every time anyway. Without the emotions involved, mentally stress and wrongful decision could be avoided.

Start NOW Effect

YES you gotta start now! Every year you waste, there will be an opportunity cost for the procrastination. Look at the example given in below table, Investor A and Investor B invested the same amount which is RM6,000, but Investor A started 5 years earlier than Investor B. 10 years later, Investor A richer than Investor B by RM3,568!

Investor A : RM6,000 -> RM11,171 -> 86%!

Investor B : RM6,000 -> RM7,603 -> 27%!

Okay, at this point you may feel that RM3,568 is nothing right? But do remember that the amount you putting in is just RM100 per month. The more you put, the more you get! So the percentage of 86% is more accurate to tell the return!RM1,000 per month? That would be RM35,684! RM10,000 per month? That would be RM356,836!

How?

Invest regularly in unit trust as low as RM100! Yes, you may just start RM100 per month as initial investment! No commitment on how long it has to be as well! A total of 202 funds available from different fund houses via iFAST. All you have to do is just contribute thru your bank cash account Direct Debit Authorization (DDA) or Financial Process Exchange (FPX). Need no worry as there is no processing/administration/transfer cost.

Now everyone can invest!

For more information or if you wish to invest, feel free to contact me at henrytcx@gmail.com